Variable Return
The Notes will not bear any interest during the term of the Notes, but will have a Variable Return, if any, per Note at maturity calculated as follows:
Variable Return = Principal Amount × Basket Return |
| Where: |
Basket Return = (Average Basket Price - Initial Basket Price) / Initial Basket price |
Initial Basket price is the weighted average of the Initial Price of each Asset based on the weightings. Average basket price is the weighted average of the Settlement Price of each Asset based on the weightings
The Settlement Price of each asset is the average of the Reference Prices for such asset as of each Averaging Date during the Term of the Notes.
Averaging Dates: Last Business Day of each month during the term of the notes commencing June 30, 2008 and ending May 30, 2014.
Performance Commentary
As at April 13, 2010 the performance of the BNS AgriFOCUSED Deposit Notes, Series 1 on a NAV basis is -14.28% since inception. The performance of the Commodities underlying the Note is significantly lower, averaging a decrease of 42.02% for the basket since inception. In addition, the Canadian yield curve has sold off this year decreasing the value of the zero coupon component of the Notes and causing a reduction in the NAV of the note.
Basket Performance
| Basket Assets |
Weight |
Initial Price
06/11/2008 |
Current Price
09/07/2010 |
Price Performance |
| Corn |
28.00% |
$709.00 |
$464.50
|
-34.49% |
| S&P GSCI™ Livestock Index Excess Return |
16.00% |
$297.06 |
$216.96
|
-26.96% |
| Soybeans |
28.00% |
$1,536.50 |
$1,035.00
|
-32.64% |
| Wheat |
28.00% |
$851.00 |
$741.25
|
-12.90% |
| Overall Return |
|
|
|
-26.72% |
| Indicative Variable Return * |
|
|
|
$0.00 |
*This value assumes all current prices remain unchanged
Note: An investment in principal protected notes may not be suitable for all investors. Important information about these investments is contained in the Information Statement of each note. Investors should obtain and carefully read a copy prior to investing, paying particular attention to the associated risks. Past performance is not indicative of future returns. Commissions, trailing commissions, management fees and expenses all may be associated with these investments. Principal is guaranteed at maturity only for products purchased at their issue price and held to maturity. The investment return on the notes, if any, is uncertain in that an investor may not receive more than return of the principal amount at maturity. A person should reach a decision to invest in the notes only after carefully considering with his or her advisor, the suitability of this investment in light of his or her investment objectives and the information set out in the respective Information Statement.
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